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Sales order

A sales order records the seller's accepted customer order and its terms. A sales order may show quantities, prices, delivery dates and other agreed terms. It helps the seller arrange fulfilment and check the later invoice. Revenue recognition requires analysis of the contract and satisfaction of performance obligations, not simply order receipt. If the order is cancelled before any goods or services transfer, it does not by itself establish revenue.

Worked example

An order specifies 50 units and the agreed price.

Common mistake

An order alone is not necessarily a completed sale or a basis for recognising revenue.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA F1 Supporting July 2027–August 2028
ACCA F2 Supporting July 2027–August 2028
ACCA FA Direct September 2026–June 2027
ACCA K1 Direct July 2027–August 2028
FIA FFA Direct September 2026–June 2027

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